Bergen's powerful Democratic boss is indicted in graft

Bergen County Democratic chairman Joseph Ferriero, one of New Jersey's most powerful political figures, was indicted by a federal grand jury Tuesday on corruption charges.

The eight-count indictment dealt a severe setback to a controversial power broker, who held a high-profile role as a delegate at the Democratic National Convention in Denver just last month, but has also long been a lightning rod for criticism within his own party.

Dennis Oury, an attorney for the Bergen Democrats and a business partner in a private consulting firm with Ferriero, also was indicted. Both men were charged with conspiracy and mail fraud. Their defense attorneys denied the charges on their behalf and accused prosecutors of overreaching.

Their firm, Government Grants Consulting LLC, helped towns land millions of dollars in grants from the county and state, charging a percentage of what they brought into the coffers. Ferriero and Oury used their considerable political clout to get the grants, authorities said.

But Oury also served as the borough attorney for one of the towns -- Bergenfield -- in what U.S. Attorney Christopher Christie called an "absolute and obvious conflict of interest."

Ferriero and Oury conspired to conceal Oury's role in the consulting from Bergenfield officials, depriving them of his "honest services" as borough attorney, the indictment said.

"The conduct alleged in the indictment is yet another example of people in public life putting self-interest above the public interest," Christie said. Weysan Dun, special agent in charge of the FBI's Newark division, said the charges capped a three-year probe that is ongoing.

Joseph Hayden, Ferriero's attorney, said the charges had "no basis in law or fact" and that he was confident his client would be acquitted at trial. He said the fees the firm charged were consistent with industry standards.

Hayden also said the firm provided a "significant benefit to Bergenfield" by obtaining grants that helped the city "create nine acres of parks and open spaces while at the same time preserving various historic buildings."

Gerald Krovatin, Oury's attorney, called the indictment an "opportunistic attempt to stretch the outer limits of the law."

"At no time did Dennis Oury benefit in any way at the expense of Bergenfield or act to the detriment of the borough," Krovatin said. He added that Oury will not rest "until he has cleared his good name and reputation."

Ferriero is the latest in a long line of politicians charged with corruption by Christie's office, a list that includes former state Senate president John Lynch from Middlesex County, who currently is serving time behind bars, and former Newark mayor Sharpe James, who reports to federal prison next week.

Ferriero was once considered one of the state's premier "political bosses." He transformed a struggling Bergen County Democratic organization into a dominant force in state politics. Under his leadership, county Democrats took over the freeholder board, the county executive's office and most of the delegation to the state Legislature.

But critics, including some within his own party, have cited him as a poster boy for "pay-to-play," the practice under which government contracts are awarded to companies that make campaign contributions.

Last week, Ferriero announced he was temporarily stepping aside from his party post.

Ferriero rose to statewide prominence after he played a key role in helping to elect former governor James E. McGreevey. Christie noted that Ferriero and Oury set up their consulting firm in December 2001, as McGreevey was preparing to take office.

"The urgency with which they wanted to get this going was because they saw an opportunity for them to now have influence with a gubernatorial administration in Trenton," Christie said.

In August 2002, according to the indictment, Ferriero and Oury's firm handled Bergenfield's applications to the state and county for grants to acquire a private estate and preserve it as a historic site.

Ferriero himself sent the application directly to Bradley Campbell, who served as commissioner of the state Department of Environmental Protection under McGreevey, according to the indictment.

In a cover letter, Ferriero told Campbell it was "extremely important" to him "personally that this application receive favorable review by the department."

Bergenfield eventually landed an $800,000 grant from the county and a $600,000 grant and loan package from the state's Green Acres program. The borough paid Ferriero and Oury's firm $128,625 -- its percentage of the grants -- in addition to a $6,000 retainer fee, according to the indictment.

Oury, as the borough attorney, billed Bergenfield for work he did on the purchase of the estate, including time he spent on telephone conference calls with one of his shareholders in the consulting firm, according to the indictment. Authorities said he never disclosed to town officials that he stood to gain from the purchase of the estate.